10-Year Note -- (2.652) Annual and annual value levels are 2.813 and 2.999 with daily, monthly, weekly, quarterly, and semiannual risky levels at 2.529, 2.380, 2.332, 2.265, and 2.249. Comex Gold -- ($1390.5) Monthly, quarterly, semiannual, and annual value levels are $1373.0, $1306.4, $1260.8, $1218.7, and $1115.2 with daily weekly risky levels at $1410.1 and $1438.1. Tuesday was almost a key reversal day. Nymex Crude Oil -- ($85.90) Quarterly, monthly, and annual value levels are $83.94, $78.51, and $77.05 with weekly, daily, semiannual, and annual risky levels at $86.51, $88.22, $96.53, and $97.29. Tuesday was a potential key reversal day. The Euro -- (1.3772) Quarterly and monthly value levels are 1.3318 and $1.2709 with daily, weekly, and semiannual risky levels at 1.4000, 1.4879, and 1.4733. Daily Dow -- (11,347) Monthly, semiannual, annual, and quarterly value levels are 10,848, 10,558, 10,379, and 8,523 with annual and semiannual pivots at 11,235, and 11,296, and daily and weekly risky level at 11,474 and 11,650. QE2 is fueling commodity speculation, which is adding to the cost of living on Main Street, USA. QE2, the purchase of $600 billion longer-dated US Treasuries, $75 billion a month through June 2011 is supposed to lower interest rates to help create jobs and lower mortgage rates, but so far the yield on the 10-year has moved higher. The initial reaction had the 10-year yield down to 2.458 last Thursday, and this yield is up to 2.647 on Tuesday. Gold traded to a new all-time high at $1,424.3 on Tuesday with crude oil at a new 2010 high at $87.63. A rebound for the dollar, lower euro put some downward pressure on an overbought Dow Industrial Average. Under open market operations the Federal Reserve buys and sells US Treasuries to add or remove reserves. QE2 is a pre-announced program to add $600 billion in reserves at $75 billion a month through next June. I totally agree with Paul Volcker (Fed Chief 1979 through 1987) that QE2 won't help much, and risks higher yields on increasing inflation expectations. I was a US Treasury and Federal Agency Trader within the Primary Dealer community between 1972 and 1989, then the US Treasury Strategist at Smith Barney 1991 through 1995. I have opined that Ben Bernanke's performance as Fed Chief has been an "F" since the beginning of his tenure. I wasn't a fan of Greenspan’s policies either. Volcker was the savior of the US economy. For Bernanke to want higher inflation while Main Street is facing a lower standard of living and a worsening cost of living is a huge mistake.

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